Chair The Fed A Monetary Policy Game Answer

Think you have what it takes to run our country s central bank. See if you can achieve full employment and low inflation as chair of the fed. What trends in the economy did you encounter.

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Were you reappointed at the end of the game.

Chair the fed a monetary policy game answer.

That s why the fed should be sticking to its original task of maintaining a stable money supply. In a one page paper answer the following questions. How did the economy react to your monetary policy changes. A monetary policy game.

Top tips for the fed chairman game. Econ 205 simulation chair the fed monetary policy game for the next quarter we kept the fed rate unchanged which brought the unemployment rate at 5 13 and inflation rate at 2 78 because due to financial market crisis where few new loans for consumers and businesses might have affected. See if you can achieve full employment and low inflation as chair of the fed. Think you have what it takes to run our country s central bank.

Unemployment rates can be lowered by setting the federal funds close to or below the inflation rate. Inflation can be lowered when the federal funds are set higher but this will also temporarily increase unemployment. As the chair of the board of governors of the federal reserve how did you respond to these changes in terms of changing monetary policy. Favorite answer you re going to find out the two goals are generally mutually exclusive.